Lawmakers close to Lee Jae-myung, the frontrunner in the South Korean presidential elections, have called for Seoul to steal a march on Washington by fast-tracking the rollout of a KRW stablecoin.
The South Korean media outlet Edaily quoted Min Byoung-dug, a lawmaker for the Democratic Party and the chairman of the party’s Digital Asset Committee, as stating that stablecoins could soon become an industry on an equal footing with AI or semiconductors. Min said:
“South Korean is an internet powerhouse. We need to take the lead in institutionalizing stablecoins before US dollar-based stablecoins become firmly established. That is the only way we can secure a sure position in the global battle for stablecoin hegemony.”
KRW Stablecoin Rollout: The Time Is Now
Min added that he thought the potential for stablecoin adoption in the payments space was “limitless.” He explained:
“We should not just sit back and watch it grow into a powerful new future industry on the scale of AI or semiconductors.”
Min is a close Lee ally and an open advocate of crypto regulation reform. He has also previously called for tax parity between South Korean stock traders and crypto investors.
Lee has repeatedly promised to launch a state-backed KRW stablecoin in response to the rapid rise of USD-pegged coins like USDT and USD Coin (USDC).
The frontrunner, who leads his closest rival Kim Moon-soo (People Power Party) in the polls by almost 10%, has called for Seoul to “enter the stablecoin market quickly.”
Lee has warned that delaying the launch of such a coin could lead to further capital flight from the country.
Min echoed Lee’s calls, telling EDaily that Seoul “must expedite the institutionalization of stablecoins.”
He explained that South Korea “should not fall behind as the use of stablecoins rapidly increases, particularly in the United States.”
USDT, USDC Dominance
Min noted the fact that USDT and USDC “account for 90% of the stablecoin market in the United States.”
He also claimed that USD-pegged coins “are already being used in some parts of Korea, such as Dongdaemun Market, where many foreign payments are made.”
Min’s comments about Dongdaegmun Market, Seoul’s biggest clothing and textiles market, may be seen as contentious.
Posters on popular South Korean crypto forums last year claimed that “mass USDT adoption” was underway at Dongdaemun, with Chinese buyers particularly keen on the coin.
However, Dongaemun traders have told both Cryptonews.com and South Korean media outlets that cash, not crypto, is still king at the market.
Regardless, Min said that rapid adoption at home and overseas means Seoul risks being left out in the cold.
He said that if USDT and USDC continue to gain popularity worldwide, the space a won-based stablecoin could fill “will inevitably diminish.”
Could Lawmakers Act Before June 3 Elections?
Min claimed that a won-based stablecoin could gain global attention and drive up global demand for won-related assets, such as the government bonds underpinning a KRW stablecoin.
The lawmaker said that fans of South Korean webtoons (web-based comics) could be among the first overseas users. Readers may use a won-based stablecoin to buy webtoons, Min said.
Min added that he is already pushing for the National Assembly to approve stablecoin legislation.
The DP has a large majority in the house going into the elections. And with the nation essentially rudderless following the impeachment earlier this year of former President Yoon Suk-yeol, the party may yet decide to push ahead with such a bill before the June 3 elections.
Min has already unveiled a private member’s bill named the Basic Act on Digital Assets, prepared with the aid of industry experts.
The lawmaker said of the draft law: “I plan to submit the bill to the National Assembly after another review.”
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